D079 CERTIFICATION PAPER 2026 FULL
SOLUTION GRADED A+
● Which factor results in a higher rate of globalization? Answer:
Reduced trade barriers
● What are the four factors in Ghemawat's CAGE analysis? Answer:
Culture, administration, geography, economy
● What is a major drawback to the home country when companies
outsource manufacturing jobs to countries with lower worker wages?
Answer: Loss of manufacturing jobs
● A country has a characteristic traditional economic system with poor
infrastructure and limited economic opportunity.
What is the impact of this system on the process of globalization?
Answer: The globalization process is at a disadvantage as the country
has a lower standard of living.
● What is a characteristic of a market economy? Answer: Firms seek to
maximize profi ts.
,● Which impact does Islamic law directly have on businesses? Answer:
It forbids charging interest.
● Which institution helps to maintain availability of global financing to
solve trade deficit issues? Answer: International Monetary Fund
● What is the current focus of the World Bank? Answer: Improving
quality of life
● For which concern has the World Trade Organization been criticized?
Answer: Adoption of labor standards protecting labor rights
● How is the Special Drawing Right of the International Monetary Fund
(IMF) valued? Answer: It is based on the value of the five most
significant members' currencies.
● Two countries agree to open their borders to international business
transactions with one another without tariffs.
How does this affect global business? Answer: It leads to developing
free trade policies with strategic partners.
● A country uses its established technology infrastructure to produce a
good.
, What is the impact of this infrastructure on trade? Answer: It will create
barriers to entry for other nations.
● What was the economic impact of the North American Free Trade
Agreement (NAFTA)? Answer: The shift of jobs away from low
comparative advantage industries
● A company that is located in Country A would like to sell products in
Country B. The government of Country B is pushing for a tariff-based
international trade agreement on the product.
What is the reasoning behind Country B's decision? Answer: Country B
seeks to protect its economy and give it the opportunity for long-term
expansion.
● Countries A and B participate in trade agreements that allow free
trade among participant countries. However, Country A imposed quotas
on several imported products to protect its domestic products.
What is the effect, if any, on the domestic prices of these products?
Answer: Increases
● Two countries decide to open up trade with each other.
SOLUTION GRADED A+
● Which factor results in a higher rate of globalization? Answer:
Reduced trade barriers
● What are the four factors in Ghemawat's CAGE analysis? Answer:
Culture, administration, geography, economy
● What is a major drawback to the home country when companies
outsource manufacturing jobs to countries with lower worker wages?
Answer: Loss of manufacturing jobs
● A country has a characteristic traditional economic system with poor
infrastructure and limited economic opportunity.
What is the impact of this system on the process of globalization?
Answer: The globalization process is at a disadvantage as the country
has a lower standard of living.
● What is a characteristic of a market economy? Answer: Firms seek to
maximize profi ts.
,● Which impact does Islamic law directly have on businesses? Answer:
It forbids charging interest.
● Which institution helps to maintain availability of global financing to
solve trade deficit issues? Answer: International Monetary Fund
● What is the current focus of the World Bank? Answer: Improving
quality of life
● For which concern has the World Trade Organization been criticized?
Answer: Adoption of labor standards protecting labor rights
● How is the Special Drawing Right of the International Monetary Fund
(IMF) valued? Answer: It is based on the value of the five most
significant members' currencies.
● Two countries agree to open their borders to international business
transactions with one another without tariffs.
How does this affect global business? Answer: It leads to developing
free trade policies with strategic partners.
● A country uses its established technology infrastructure to produce a
good.
, What is the impact of this infrastructure on trade? Answer: It will create
barriers to entry for other nations.
● What was the economic impact of the North American Free Trade
Agreement (NAFTA)? Answer: The shift of jobs away from low
comparative advantage industries
● A company that is located in Country A would like to sell products in
Country B. The government of Country B is pushing for a tariff-based
international trade agreement on the product.
What is the reasoning behind Country B's decision? Answer: Country B
seeks to protect its economy and give it the opportunity for long-term
expansion.
● Countries A and B participate in trade agreements that allow free
trade among participant countries. However, Country A imposed quotas
on several imported products to protect its domestic products.
What is the effect, if any, on the domestic prices of these products?
Answer: Increases
● Two countries decide to open up trade with each other.
